President Klaus Iohannis enforced on Monday, July 20, the new law on the Fiscal Procedure Code. The Chamber of Deputies approved the law at the end of June with 306 votes “for”, two votes “against” and one abstention.

The new Fiscal Procedure Code will simplify the administrative procedures for tax claim recovery, said Finance Minister Eugen Teodorovici.

Iohannis, however, rejected the new Fiscal Code law, which was recently passed by the Parliament, which included the VAT rate cut from 24% to 19% starting January 1, 2016. Iohannis decided on Friday, July 17, to send the code back to the Parliament for review. He said that the effects of the measures proposed by the new Fiscal Code should be well analyzed, and that these measures should be sustainable on the long term.

Finance Minister reacted on July 20 by saying that the President should have consulted him before rejecting the Fiscal Code.

editor@romania-insider.com